Carney Says Chance of a No-Deal Brexit Is ‘Uncomfortably High’

MARK Carney reveals he has ordered banks to be ready for a recession if there is a "no deal" Brexit.

Jacob Rees-Mogg, who leads the Conservative pro-Brexit European Research Group, said: "Mark Carney has always been the high priest of Project Fear, whose reputation for inaccurate and politically motivated forecasting has damaged the reputation of the Bank of England".

The fall came after Bank of England Governor Mark Carney said there was an "uncomfortably high" chance that Britain will leave the European Union without a deal.

Mark Carney's comments came as Theresa May prepared to cut her holiday short to meet the French President Emmanuel Macron at his summer retreat.

Carney said Britain's financial system would in any case be able to "withstand the shock" as banks have increased capital and liquidity and contingency plans have already been put in place. "It is highly undesirable, parties should do all things to avoid it", Carney said during an interview on BBC Radio 4's Today Programme.

And is now provoking Brexiteers again by making similar claims about a "no deal" Brexit, calling it "highly undesirable" and saying it will lead to higher prices.

He then added: "As a outcome of that, a disruption to the level of economic activity, higher prices for a period of time".

Carney revealed that banks had been stress-tested for property prices falling by more than a third, interest rates going up by nearly four percentage points, unemployment rising to 9.0 percent and the economy entering a 4.0 percent recession.

"We have been planning for very hard circumstances and the banks are ready", Mr Carney said.